Earlier this month, Secret Agent released our findings on the price per square metre of apartments in the secondary market. In this bulletin, we look closely at apartments in the upper tier of Melbourne property, exclusively those that have sold for above $2 million.
The same methods from the previous study applied: each floor plan was manually measured for its internal habitable space, and the final measurement excluded external walls or structural elements, outdoor space, car spaces and storage cages. Sales were included only if a price and scaled floor plan were available.
- This study included 12 penthouses, which are typical assets in the top end of the market.
- More than half of the sampled apartments have a North-facing aspect, balcony or terrace. This is the most desirable orientation for optimum natural light and passive heating.
- Apartments in the $2million plus market were 59% more expensive on a per square metre basis than the rest of the market (below $2million).
- On average, 3 bedroom apartments sold at a higher cost per square metre than 4 bedroom apartments (Table 2).
- 5 of the apartments were located in period or Art Deco buildings, while the rest were constructed from the 1990s onwards. Most of these newly built apartments were designed by renown architects such as Fender Katsalidis, Robin Boyd, Woods Bagot, Ashton Raggatt McDougall, Bates Smart, or boutique developers such as Neometro.
For this study, 32 apartments sold between the 1st of May 2015 to 31st of May 2016 were analysed. The average sale price for these apartments was $2,571,469. The sample mostly consisted of apartments from the central, inner East and inner South of Melbourne. The average price per square metre for $2million plus apartments was $13,653. The results by suburb are shown in Table 1.